Question
Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows: 10 pizzas at $12
Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows:
10 pizzas at $12 each
Rent of apartment, $750 per month
Gasoline, car insurance, and maintenance, $150
Phone service (basic service plus 10 long-distance calls), $50
In the year following the base year, the survey takers determine that pizzas have risen to $15 each, apartment rent is $810, gasoline, car insurance, and maintenance have risen to $170, and phone service has dropped in price to $40.
a)Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year.
Instructions: Round your CPI answer to 3 decimal places and Rate of inflation to 1 decimal place.
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